Rapid City Car Insurance
Auto insurance is required in many states, and South Dakota is no exception. Consumers may be searching for the best way to save on their monthly bills, and one option is to lower expected expenses by finding the right coverage at an attractive price.
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Rather than trying to save on insurance by reducing coverage levels, it is possible to save by shopping around, raising deductible levels, and making other changes. Here is what future or current residents of South Dakota should know in order to protect themselves financially and look out for their best interests.
Mandatory Liability Coverage in South Dakota
The purpose of liability coverage is to protect other drivers in the event that you cause an accident. Most states only require liability, but South Dakota goes a step further by insisting that you also have uninsured and underinsured motorist coverage.
Here are the minimum levels that you should consider when comparing different policies:
- Bodily injury liability in the amount of $25,000 per person with a total coverage level of $50,000 per accident.
- Property damage liability must be at least $25,000 for a single accident.
- Uninsured and underinsured motorist coverage for bodily injury. The required amounts are $25,000 for an individual and $50,000 per accident
Understanding how Minimums Work
Carrying these minimum levels will keep people in full compliance with state laws, but these levels may not be enough to cover the full extent of damage in an accident.
Victims are able to hold the person responsible liable for the difference between the policy limits and what their damage actually was. This is one of the reasons why South Dakota requires drivers to carry additional protection against uninsured and underinsured motorists.
For example, consider that you are at fault for an accident where a new car worth $50,000 is totaled. You only have $25,000 in property damage liability, but the other driver has uninsured and underinsured coverage in $25,000. The two policies combined are enough to cover the damage.
However, you must consider the possibility that the property damage exceeds the total coverage limits.
In this situation, the combined limits on the plans may not be enough to cover all of the damage. South Dakota is an ”Add-on” insurance state with restrictions only on lawsuits or medical expenses and lost wages. When it comes to pain and suffering, people are not restricted from bringing suits in order to receive compensation.
As a driver, you can take steps to avoid these personal lawsuits by ensuring that you have higher coverage levels.
Be Aware of Trends
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More Accident Victims are Hiring Attorneys
According to the Insurance Research Council, more auto injury claimants are turning to attorneys for assistance. The study reports that the number of claimants represented by attorneys rose by nearly 36 percent from 2007 to 2012.
The study also shows that people who had an attorney were more likely to be involved in apparent claim abuse. Furthermore, is it believed that people who worked with an attorney received less money in compensation while waiting longer for a final resolution.
The individuals in this study were also more likely to undergo extensive medical testing than those who were not working with an attorney.
This trend is important to note because the entire process can be dragged out by the involvement of an attorney. While the claimant may ultimately see less money as a result, the entire process can still wind up costing the at-fault driver or insurance company more due to legal fees and other expenses.
This is one reason why consumers are encouraged to increase their coverage levels.
When there is more than enough insurance coverage, then the settlement will have to work through the insurance company, and that helps protect the financial interests of the other driver.
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Insurance is Becoming More Affordable
One very positive trend is the change in insurance costs. According to a December 2013 from the Insurance Research Council, the cost of insurance is becoming more affordable among all income levels.
While the cost of utilities, food, and other expenses steadily rises, the costs in South Dakota have remained static over the years, and that makes it more affordable for consumers.
If you haven’t looked into new insurance in a while, then this may be the time to make the change. With rates falling in many areas and for different types of drivers, you may find that you can save on this monthly expense by changing companies.
Smart Comparison Habits
When comparing insurance plans, you need to make sure that you’re comparing apples to apples.
Take the time to identify your insurance needs by learning more about the coverage options. It may be worth your time to meet with a financial advisor to discuss what coverage levels will effectively shield your assets and protect you financially in the event of a lawsuit.
In addition to the state required coverage for liability, property damage, and uninsured/underinsured motorists, here are some other types of coverage you may want to consider:
- Comprehensive - covers your car if it’s vandalized, damaged in a storm, or if it sustains damage from some other incident not related to an accident. This coverage is typically required by finance companies if you have taken out a loan to purchase your vehicle.
- Collision - covers damage to your car if you are in an accident. This coverage is also normally required if you have an outstanding loan on your car.
- Deductibles - the price you pay before insurance coverage kicks in. This amount can be raised to bring insurance premiums down, but be sure to set aside the money in a savings account so that you’ll be able to cover the deductible if you ever need to.
- Rental reimbursement - generally only costs a few dollars every month and may be worth it if you only have one car. Before going with this coverage, see if you have rental reimbursement through any other company such as a roadside assistance plan or even as a credit card perk.
- Roadside assistance - assists you when your vehicle has some sort of mechanical failure, leaving you stranded. This is a great feature if your company offers it.
- Glass breakage - coverage specifically for your auto glass.
Before you start comparing quotes, take the time to write out detailed notes about the coverage you’re looking for.This is an easy way to protect yourself and ensure that you get the protection you need and that you’re comparing equivalent plans.
Finally, speak with companies to ensure that they’re offering you all the discounts you might qualify for before comparing the final prices and making your decision.